Natural gas and NGLs (natural gas liquids) MLPs are involved in natural gas gathering, processing, and compression and NGLs fractionation. Natural gas recovered from a wellhead must be processed in order to meet specifications before it can be delivered for final use.
In addition to natural gas, processing produces mixed NGLs. They’re separated through fractionation. These types of MLPs, including DCP Midstream Partners (DPM) and EnLink Midstream Partners (ENLK), have maximum exposure to commodity prices through non-fee-based agreements. We’ll look more into this in the next article.
View more information: https://marketrealist.com/2016/11/look-midstream-energy-value-chain/